MHP releases timetable for its tender offer

Ukraine’s largest poultry producer MHP (MHPC LI, MHPSA) released on April 18 a timetable for its tender offer for up to USD 350 mln of its USD 750 mln in Eurobonds maturing in 2020. Until April 27 (early tender deadline), noteholders will be able to tender their notes at a price of 102.75% of par. Till May 15 (expiration deadline), the price offered by MHP will be 99.75% of par.

The early results announcement date (when the company will announce whether the conditions on the tender offer will be satisfied or waived) will be on the day following the pricing of the new Eurobonds.

The final results announcement date will be on or about May 16, with the payment date expected to be on or about May 17.

Any accrued or unpaid interest will be paid out up to, but excluding, the tender offer payment day. The company also reserves the right to withdraw, change, modify or terminate the tender offer.

Igor Zholonkivskyi: MHP has not specified the exact planned volumes for its new Eurobonds. With the early tender offer at 102.75% (which is slightly higher than the current price of MHPSA’20 bonds), we think the price is reasonable for the bondholder side to consider selling back their notes to MHP. But whether the target of USD 350 mln will be met is difficult to predict.